Comment on this Article

Fed Governor: Sarbox Spurs Cash Jitters Kevin Warsh says that "the uncertainty resulting from the regulatory and legal environment has had meaningful economic implications for business investment and cash holdings.”

Stephen Taub, CFO.com | US
July 18, 2006

Inflation Damper

Is the Fed taking this hording into effect when they calculate the money supply and the need to raise interest rates further? This hoarding -- to the extent it places funds in short-term instruments -- affects the money supply as well as the cost of capital.

Posted by Robert Barker | Jul 18, 2006 8:11 PM ET